Private equity firm CD&R prepares Morrison’s counteroffer

Private equity firm CD&R prepares Morrison’s counteroffer

Private equity firm CD&R prepares Morrison’s counteroffer

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© Reuters. FILE PHOTO: A Morrison store is shown in St Albans, Britain, on Sept. 10, 2020. REUTERS / Peter Cziborra / File Photo

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LONDON (Reuters) – Private equity firm Clayton, Dubilier & Rice (CD&R) is poised to start a bidding war for British supermarket chain Morrisons, the target of a 6.3 billion pound ($ 8.8 billion) offering. from a group led by another American. Procurement firm Fortress reported the Sunday Times.

The newspaper said CD&R was understood to have been preparing equity and debt financing for a counter offer that could arrive in the next few days.

If successful, CD&R would open Morrisons convenience stores at fuel stations operated by the firm-owned Motor Fuel Group, and work alongside Morrisons’ existing management team, the Sunday Times said.

A CD&R spokesperson declined to comment on the report.

Earlier this week, British money manager M&G joined in criticism of the Fortress-led offer that Morrisons agreed to, which is worth about 6.3 billion pounds and outbid a rival offer from Apollo.

Morrisons’ largest shareholder Silchester has also said it is unwilling to support the offering of Britain’s fourth-largest supermarket chain. Schroders (LON 🙂 Plc is also an investor in Morrisons.

SoftBank Group Corp controls Fortress

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